India's Economy Grows 7.9 Percent, Surpasses Predictions

Area Development News Desk

11/30/2009

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The economy of India grew 7.9 percent in July to September 2009, according to the Associated Press (AP). The figure is considerably higher than economists' average prediction of a 6.3 percent increase; the Indian economy grew 6.1 percent in the April to June period. AP reports that the growth was supported by government stimulus measures and rising industrial production. Indian government advisor Montek Singh Ahluwalia says the government may increase its gross domestic product estimate for the year from the current 6.5 percent due to the unexpected economic growth. "It's difficult to project what will happen in the rest of the year," he says, quoted by AP. "But this performance does suggest that there may well have to be an upward revision." Private economists in India are not as optimistic, citing a disastrous monsoon season's negative impact on agriculture and irresponsible government spending as signs that the current growth is unsustainable.